Q1 2026 Amentum Holdings Inc Earnings Call

February 10, 2026

Speaker #1: At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star 0 for the operator.

Speaker #1: This call is being recorded on Tuesday, February 10th, 2026. I would now like to turn the conference over to Nathan

Speaker #1: And partner to one of the utilities. And in the Netherlands, Amentum secured a 5-year, $207 million contract to provide planning and engineering services to two gigawatt-scale power plants, supporting the future development of up to the world's largest nuclear projects, strengthening our position in Europe's energy transition.

Speaker #1: Rutledge. Thank

Speaker #2: you, and good morning, everyone. We hope you've had an opportunity to read our earnings release, which we issued yesterday afternoon and is posted on our investor relations website.

Speaker #2: We have also provided presentation slides to facilitate today's call. So let's move to slide 2. Please note that this morning's discussion will contain forward-looking statements.

Speaker #1: Beyond nuclear, we continue to win work that reflects the breadth and diversification of our portfolio across customers, geographies, and contract types. Our capabilities in digital and other mission-critical operations are resonating with customers both domestically and engineering, advanced sustainment, internationally.

Speaker #2: They are subject to important factors that could cause actual results to differ materially from anticipated. I refer you to our FEC filings for a discussion of these factors, including the risk factor section of our annual report on Form 10-K.

Speaker #1: Award highlights include the U.S. Air Force 6-year single award IDIQ with a ceiling value of up to $995 million, for unmanned sustainment, modernization, and training.

Speaker #2: The statements represent our views as of today and subsequent events may cause our views to change. We may elect to update the forward-looking statements at some point in the future, but specifically disclaim any obligation to do so.

Speaker #1: Under this contract, Amentum will globally reinforce readiness and training, deploying specialized solutions and capabilities. Next, we were awarded a contract: a 5-year, $120 million award to deliver scalable computing power on demand.

Speaker #2: In addition, we will discuss non-GAAP financial measures, which we believe provide useful information for investors. Both our earnings release and supplemental presentation slides include reconciliations to the most comparable GAAP measures.

Q1 2026 Amentum Holdings Inc Earnings Call

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Q1 2026 Amentum Holdings Inc Earnings Call

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Tuesday, February 10th, 2026 at 1:30 PM

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John Heller: Partner to one of the world's largest nuclear utilities. In the Netherlands, Amentum secured a 5-year, $207 million contract to provide planning and engineering services supporting the future development of up to 2-gigawatt-scale power plants, strengthening our position in Europe's energy transition. Beyond nuclear, we continue to win work that reflects the breadth and diversification of our portfolio across customers, geographies, and contract types. Our capabilities in digital engineering, advanced sustainment, and other mission-critical operations are resonating with customers both domestically and internationally. Award highlights include the U.S. Air Force 6-year Single Award IDIQ, with a ceiling value of up to $995 million for unmanned sustainment, modernization, and training. Under this contract, Amentum will deploy specialized solutions and expertise in the U.S. and globally to reinforce readiness and training capabilities.

John Heller: Next, we were awarded DISA Compute as a Service contract, a 5-year, $120 million award to deliver scalable computing power on demand. We're excited to support our customer's mission through this unique outcome-based contract and see it as a potential model for shaping future proposals. Finally, we secured a 3-year, $270 million contract from a foreign military customer to provide advanced C5ISR solutions. Our progress this quarter demonstrates consistent execution against our strategy and reinforces our confidence in our ability to continue building a high-quality backlog and delivering durable, long-term growth. Before we dive into our space systems and technologies market, let's turn to slide 5 to step back and re-anchor our discussion in the growth framework we introduced last quarter. We outlined three accelerating growth markets where Amentum is particularly well-positioned: space systems and technologies, critical digital infrastructure, and global nuclear energy.

John Heller: These markets are characterized by strong demand visibility, attractive margin profiles, and long-term growth potential across government and commercial customers. These markets also align with enduring macro trends and support the technological needs of a growing global economy. Please turn to slide 6 to cover in more detail space systems and technologies, which we view as a set of interconnected markets that scale together across satellites, launch, integrated systems, and satellite communications. Together, they represent an approximately $90 billion market projected to grow around 9% annually over the next 5 years, driven by higher launch cadence and increasing mission demand. Starting with satellites, demand continues to shift towards proliferated low Earth orbit constellations. Smaller satellites now dominate launch volumes across broadband sensing and national security missions. These architectures enhance resilience but also increase integration and lifecycle complexity, areas where customers value experienced system integrators. Integrated systems are also changing rapidly.

John Heller: Infrastructure is becoming more software-defined, virtualized, and cloud-integrated. While this improves scalability, it also raises the importance of integration, cybersecurity, automation, and end-to-end mission operations as data volumes and mission tempo increase. Launch activity is accelerating. Lower-cost commercial launch, reusable vehicles, and increased competition are driving a higher cadence across government and commercial customers. As launch volumes expand, operational demands increase across mission integration, safety, and sustainment. Satellite communications, or SATCOM, is also expanding as a foundational layer of global connectivity. Growth in broadband constellations, mobile communications, and sovereign networks is driving higher throughput and adoption of multi-orbit architectures. SATCOM underpins mission-critical defense, mobility, and commercial applications worldwide. Taken together, these trends are expanding the space market and increasing demand for companies like Amentum that can integrate, operate, and sustain complex systems across their full lifecycle.

John Heller: Moving to slide 7, let's discuss how Amentum is uniquely positioned with robust experience and capabilities to advance the future of space. Beginning with missile defense and command-and-control integration and modernization, demand continues to rise for resilient space domain awareness and integrated missile warning and tracking. These priorities are central to U.S. and allied national security strategies and are driving sustained investment. Amentum supports these national security missions today through programs such as IRES, providing advanced engineering sustainment, and NISS II, supporting global surveillance, missile warning, and classified communications. As hypersonic and ballistic threats evolve, demand for satellite-based tracking will only increase. Our performance and expanding capabilities position Amentum well for space-enabled missile defense opportunities such as Golden Dome under the $151 billion SHIELD IDIQ on which Amentum was recently awarded a position.

John Heller: Amentum plays a critical role providing full lifecycle solutions for human exploration and has numerous active programs supporting Orion, the Space Launch System, and exploration ground systems. These programs require continuous engineering, integration, operations, and sustainment across multi-year mission cycles. They are not one-time development efforts but long-duration, recurring opportunities supported by sustained demand across multiple human spaceflight missions. These efforts require advanced propulsion, power, autonomy, and payload integration, areas where Amentum brings deep expertise and where we see growth across both national security and commercial customers. Finally, in deep space research and development, Amentum focuses on robotic exploration and early-stage systems that extend human reach beyond Earth's orbit. Our work includes missions such as space vehicles designed to operate in extreme lunar environments.

John Heller: We also see growing opportunities to support emerging technologies, including propulsion systems that will leverage advances in nuclear energy and in Mars-related ascent and sample return technologies, where early research and systems engineering are critical to reducing risk. We're positioned to lead mission-critical space integration today while scaling and extending our capabilities to capture long-term growth across the space economy of tomorrow. In summary, Amentum enters the remainder of the fiscal year from a position of strength. Our results, backlog, and pipeline reflect disciplined execution, durable customer demand, and the value of our differentiated capabilities across complex mission-critical environments. As global needs evolve across defense, energy, space, and digital infrastructure, we are well-positioned to support our customers' most important missions while creating long-term value for our stakeholders. We remain focused on execution, growth, and delivering on the commitments we've made. With that, I'll turn it over to Travis.

Travis Johnson: Thank you, John, and good morning, everyone. I'm excited to discuss with you today Amentum's solid first-quarter performance, our continued trajectory to achieve net leverage less than three times by year-end, enabling a more flexible and opportunistic capital deployment posture, and our confidence in achieving full-year results in line with the guidance provided in November. To echo John's sentiment, I'm particularly encouraged by the continued successful execution of our strategy, evidenced by another quarter of robust bookings and by outstanding margin performance, both of which were enabled by the relentless focus and dedication to operational excellence from our employees around the globe. With that, let's begin with an overview of our financial performance on slide 8. Revenue in the first quarter totaled $3.24 billion, reflecting the joint venture transitions and divestitures previously discussed, as well as impacts from the government shutdown.

Travis Johnson: Underlying growth normalizing for these items was approximately 3%, driven by the ramp-up of new contract awards in our critical digital infrastructure, space systems, and technologies accelerating growth markets. Adjusted EBITDA of $263 million benefited from a 40 basis point year-over-year increase in adjusted EBITDA margins to 8.1%. Alongside continued strategic progress to prioritize higher margin work, margin expansion was enabled by strong program performance and reduced indirect spending as a result of realized cost synergies and disciplined expense management during the shutdown. Adjusted diluted earnings per share of $0.54 was up 6% from a year ago and reflects lower interest expense driven by our debt reduction initiative. Moving to our reportable segment results on slide 9, digital solutions delivered revenue of $1.34 billion, representing 4% growth on a reported basis and a robust 8% after normalizing for the items mentioned previously.

Travis Johnson: The year-over-year increase was driven by the continued ramp-up of new contract awards led by strength from commercial programs and critical digital infrastructure. Adjusted EBITDA increased to $103 million as a result of the higher revenue volume, resulting in adjusted EBITDA margins of 7.7%. Turning to global engineering solutions, revenue was $1.9 billion, reflecting the impacts from JV transitions, the divestiture, and the government shutdown. Normalizing for these items, underlying revenue was consistent with the prior year as revenue from new contract awards were offset by the expected rampdown of certain historical programs. Adjusted EBITDA of $160 million reflects an 80 basis point year-over-year increase in adjusted EBITDA margins to 8.4%. The strong profitability was enabled by prioritizing higher margin growth opportunities, disciplined program execution, and delivering against cost synergy initiatives. Now, turning to slide 10 to cover our cash flow and capital structure highlights.

Travis Johnson: We're also pleased with the recent Moody's credit rating upgrade, which underscores our improving financial profile, immediately reduces interest expense in our term loan B by 25 basis points, and positions us for enhanced financial flexibility and market access moving forward. With a strong balance sheet, robust liquidity, and focus on generating sustainable free cash flow, we are well-positioned to deliver enduring value for our shareholders. Achieving our target net leverage of less than three times by the end of the fiscal year remains a priority. In looking into fiscal year 2027 and beyond, we will remain disciplined in our approach, maintaining a prudent capital structure that enables flexible and opportunistic deployment. On slide 11, let's now turn to our fiscal year 2026 full-year outlook.

Travis Johnson: As a result of Q1 performance, backlog of $47 billion, including $7 billion in funded backlog up 23% from last quarter, and with 95% of revenue expected to come from existing or recompete business, we remain confident in the outlook provided in November. We are reaffirming guidance for the year, including revenue in the range of $13.95 to 14.3 billion, adjusted EBITDA between $1.1 and 1.14 billion, adjusted diluted earnings per share between $2.25 and $2.45, and free cash flow between $525 and $575 million. All metrics reflect healthy underlying organic growth, and the primary guidance assumptions remain unchanged. From a timing perspective, we continue to expect quarterly sequential increases in revenue, adjusted EBITDA, and adjusted diluted earnings per share as we move beyond the government shutdown and will benefit from additional working days in the remaining quarters.

Travis Johnson: To assist with modeling, we have included a breakout of working days by quarter in the appendix. I will also note that for Q2, consensus estimates are in line with our expectations. From a free cash flow perspective, as previously shared, we have seen a rebound in collections and therefore expect approximately 25% of our to-go free cash flow generation in the second quarter. Wrapping up on slide 12, we are pleased with our start to the year, which reflects our ability to deliver solid results through disciplined operational execution and strategic focus. With continued robust bookings, strong market demand signals, and progress towards our leverage reduction goals, we are confident in achieving our full-year outlook and in positioning Amentum for sustained value creation. With that, operator, please open the line for questions.

Travis Johnson: Hey, Colin. Good morning. So as stated in my preparatory remarks, there were two primary drivers for Q1 cash performance, both of which were simply timing-related and have no impact on our expectations for the full year. And so first, as noted on our last earnings call, we had an additional pay cycle relative to Q1 of last year, which obviously will normalize as we move through the rest of the fiscal year. And second, there was an unexpected government holiday closure, which you guys may be familiar with. So the administration gave government employees an additional two days off in addition to Christmas and New Year's at the end of December and headed into the new year. And so that pushed some collections into the first part of January due to delays in customer approvals and processing. So really, again, just timing-related.

Travis Johnson: And perhaps to provide some more context, collections in the first week of the second quarter were $100 million higher than they were in the first week of Q2 of last year, kind of just reemphasizing that it was just collections timing that was pushed due to delays in approvals. And so looking ahead for the rest of the year, given the rebound we've already seen in the beginning of the second quarter, we're confident achieving results that are in line with the guidance that we reaffirm for the full year, with the midpoint being at $550 million. And roughly 25% of that to-go free cash flow we do expect in the second quarter. And then obviously, Q4, as it always has been, will be our strongest free cash flow quarter as a result of our alignment with government fiscal year-end.

Travis Johnson: Well, the first thing that we highlight is, I think, we highlighted in the prepared remarks just the fact in Q1 with $1 billion of awards in the nuclear space. And given the fact that nuclear of our over $14 billion business represents just over $2 billion, you can see we're making really good progress and see acceleration in that market overall as it relates to our portfolio. But of course, we're $14 billion, so it's going to take time to see the nuclear business really have a significant impact on a, say, quarter-by-quarter. But on a year-by-year basis, we do expect these accelerating growth markets, including nuclear, space, and digital, all to have a positive impact on margins. We're still looking for margin improvement year-over-year. It's going to be driven by those three areas.

John Heller: Well, the first thing that we highlight is, I think, we highlighted in the prepared remarks just the fact in Q1 with $1 billion of awards in the nuclear space. And given the fact that nuclear of our over $14 billion business represents just over $2 billion, you can see we're making really good progress and see acceleration in that market overall as it relates to our portfolio. But of course, we're $14 billion, so it's going to take time to see the nuclear business really have a significant impact on a, say, quarter-by-quarter. But on a year-by-year basis, we do expect these accelerating growth markets, including nuclear, space, and digital, all to have a positive impact on margins. We're still looking for margin improvement year-over-year. It's going to be driven by those three areas.

Travis Johnson: Nuclear is certainly stepping up and contributing there with the contract awards we announced, including kind of EDF and the Netherlands contract award. Of course, we announced Rolls-Royce, but that was an award after the quarter. We're continuing to see progress on the nuclear side, and we would expect that to be a big story for the business with the European market, still robust, as we talked about a couple of big awards there this quarter. The US market is just really starting to accelerate as these bigger deals, new starts, extensions for existing plants, and the SMR market are all starting to get some momentum. We have a lot of inbound demand in these areas. That's probably going to take a few more quarters to see the money come together, those projects get greenlit.

John Heller: Nuclear is certainly stepping up and contributing there with the contract awards we announced, including kind of EDF and the Netherlands contract award. Of course, we announced Rolls-Royce, but that was an award after the quarter. We're continuing to see progress on the nuclear side, and we would expect that to be a big story for the business with the European market, still robust, as we talked about a couple of big awards there this quarter. The US market is just really starting to accelerate as these bigger deals, new starts, extensions for existing plants, and the SMR market are all starting to get some momentum. We have a lot of inbound demand in these areas. That's probably going to take a few more quarters to see the money come together, those projects get greenlit.

Travis Johnson: But nonetheless, we are working with a lot of companies that are working to put these US projects on track to begin. So that's going to really help accelerate the future. And of course, just a final point I'll make is the timeline on these, the upfront work on a nuclear project is typically in the engineering, the governance, getting regulatory approvals, preparing for construction. And then the revenue on these projects accelerates quite a bit once you move into construction. And that can take anywhere from 1 to 5 years to move into those stages. So these are really 5- to 10-year projects, which then have a kind of a tail that can go decades. But in terms of getting to the peak, it usually takes 2 to 5 years to see the peak revenue opportunity on nuclear.

John Heller: But nonetheless, we are working with a lot of companies that are working to put these US projects on track to begin. So that's going to really help accelerate the future. And of course, just a final point I'll make is the timeline on these, the upfront work on a nuclear project is typically in the engineering, the governance, getting regulatory approvals, preparing for construction. And then the revenue on these projects accelerates quite a bit once you move into construction. And that can take anywhere from 1 to 5 years to move into those stages. So these are really 5- to 10-year projects, which then have a kind of a tail that can go decades. But in terms of getting to the peak, it usually takes 2 to 5 years to see the peak revenue opportunity on nuclear.

Travis Johnson: Hey, Toby. This is Travis. I would characterize it like this. Obviously, we're starting to strategically prioritize higher margin work, both in the accelerated growth markets that John highlighted, but also in our core markets, right? We still have $10 billion worth of the markets which we're a leader in, great work, and still growth opportunity there. But we're also looking to expand margins in that part of the portfolio, which will be a big part of the story. And as we look at the bids going in, including things like contract mix, we are certainly seeing a shift over time. As we've stated, it will take time with $47 billion in backlog, right? It's a big shift this year, but we are seeing that. You'll see in our contract mix composition in the 10-Q; you'll see we've started to progress towards a higher percentage of fixed-price work.

Travis Johnson: Yeah. Certainly, the margin performance for the entire company, and obviously led by global engineering solutions, was a highlight for the quarter. Things like revenue and cash flow timing that are out of our control impacted from the government shutdown happened. Luckily, that's behind us. But the margin performance is something we're really proud of the team for delivering. And it wasn't really just one area. It was a few different areas. First, it's progress on our strategic objective to prioritize higher margin work. And as I stated a little bit earlier, you'll see in our 10-Q that we've got a higher percentage of fixed-price work that contributed to that. Also, there were some mixed benefits from the government shutdown, and just the work that was impacted from the shutdown with some lower margin work, and obviously continued benefits from our cost synergy initiatives.

Travis Johnson: Yeah. Thanks, Kristine. And we're very aware that to meet the power needs of the nation and, frankly, the world, that you're going to have to look, and there's a big article today, of course, in the Wall Street Journal on coal, restarting coal plants, extending coal plants, and other sources to create the bridge to where nuclear can step in. And our focus is on bringing that nuclear infrastructure online. And what you're seeing and this administration is very active in supporting using kind of the existing infrastructure and bringing that infrastructure online that is more carbon-based while we bring these SMR or gigawatt-sized plant projects online in parallel. So we're seeing projects being discussed and planned and the money coming together behind the overall plan to bring all this additional power online. And nuclear is a huge part of that, which is going to keep us extremely busy.

John Heller: Yeah. Thanks, Kristine. And we're very aware that to meet the power needs of the nation and, frankly, the world, that you're going to have to look, and there's a big article today, of course, in the Wall Street Journal on coal, restarting coal plants, extending coal plants, and other sources to create the bridge to where nuclear can step in. And our focus is on bringing that nuclear infrastructure online. And what you're seeing and this administration is very active in supporting using kind of the existing infrastructure and bringing that infrastructure online that is more carbon-based while we bring these SMR or gigawatt-sized plant projects online in parallel. So we're seeing projects being discussed and planned and the money coming together behind the overall plan to bring all this additional power online. And nuclear is a huge part of that, which is going to keep us extremely busy.

Travis Johnson: Yeah. Good morning. So between kind of the four drivers that I mentioned earlier being just overall strategic progress to prioritize higher margin work, which means that we have lower margin work falling off and we're winning work that's coming online at higher margin, the kind of one-time impact from the quarter of the mix from the government shutdown impact, realized cost synergies, and then strong program performance, it was really, especially in global engineering solutions, kind of evenly spread across those drivers. So not one kind of outsized contribution relative to those four things, but rather a combination of all of them. And then as we look to the rest of the year, again, the midpoint of our guidance is 7.9%, but the whole range contemplates EBITDA margins up to 8.2%. So obviously, we put out guidance that contemplates a range of different outcomes.

Travis Johnson: Yeah. No. We're real excited to highlight that this quarter. Our teams are working across the space domain in very different areas that we outlined in the presentation. We thought that would be really good to share. I'm glad that you brought that up because we were real excited to kind of make that a centerpiece of the quarter. Our position in the market is really built on long-standing roles and mission-critical programs, really on missile warning systems, missile defense, space domain awareness, command and control. I mentioned programs like IRES and NISS II, great examples of our advanced engineering sustainment, hypersonic and ballistic missile development, another area. We recently won a contract to support the UK's hypersonic program. We're real excited about that. So we see that the strength of our history positions us in these areas that we highlighted.

John Heller: Yeah. No. We're real excited to highlight that this quarter. Our teams are working across the space domain in very different areas that we outlined in the presentation. We thought that would be really good to share. I'm glad that you brought that up because we were real excited to kind of make that a centerpiece of the quarter. Our position in the market is really built on long-standing roles and mission-critical programs, really on missile warning systems, missile defense, space domain awareness, command and control. I mentioned programs like IRES and NISS II, great examples of our advanced engineering sustainment, hypersonic and ballistic missile development, another area. We recently won a contract to support the UK's hypersonic program. We're real excited about that. So we see that the strength of our history positions us in these areas that we highlighted.

Travis Johnson: Today, we're driving those critical missions with the Missile Defense Agency and other parts of the Department of Defense, but even NASA. So we're excited about really the in-house expertise that we've built across these critical missions. I think the real theme at this point in time is all of these critical missions are becoming more complex. So a partner that can deliver agile and scalable systems, all these missions require more rapid tech insertion. And that's really the Amentum team that we've built in the space portfolio. And moving forward, really, there's just three things that give us a lot of optimism. I think, number one, if you look at where we're deploying our proven expertise today, we're deployed in areas where the spending is becoming more durable. That's something we see across the missions we're supporting.

Travis Johnson: Secondly, we are excited about we are on and hold the right contract vehicles. We talked about existing DoD and NASA contracts. Of course, we picked up a position on the SHIELD contract where we had the chance to compete and win work in support of Golden Dome. In recent months, we've had the nice new win on the COSMOS contract with NASA where we're waiting for protest disposition. But all these things give us kind of line of sight on growth in 2026 and into 2027. But maybe in the biggest picture, the third point we're excited about is all the capabilities we have mentioned have developed in-house translate across these missions, whether it's national security space, whether it's deep space exploration, or even some of the emerging commercial opportunities.

Travis Johnson: Yeah. I'll just make a quick comment. Maybe Travis can get into the numbers, but a quick comment that's a little tongue-in-cheek on the industry. But 21% of our revenue right now is non-US government. In the US government, you still have protests on new awards. We've mentioned we have $2 billion of new awards sitting in protest. So our BD engine is working. We're real excited with our strategy that we've outlined. Our win rates are strong, and our backlog is growing. But we have protests. But what's interesting is in the non-US government business, we really have no protests, right? So we're able to transition those awards, whether it's in the nuclear space or foreign government space, immediately into revenue and contribution to margin improvement. And so that's kind of another exciting part about the nuclear market is we announced $1 billion of awards.

John Heller: Yeah. I'll just make a quick comment. Maybe Travis can get into the numbers, but a quick comment that's a little tongue-in-cheek on the industry. But 21% of our revenue right now is non-US government. In the US government, you still have protests on new awards. We've mentioned we have $2 billion of new awards sitting in protest. So our BD engine is working. We're real excited with our strategy that we've outlined. Our win rates are strong, and our backlog is growing. But we have protests. But what's interesting is in the non-US government business, we really have no protests, right? So we're able to transition those awards, whether it's in the nuclear space or foreign government space, immediately into revenue and contribution to margin improvement. And so that's kind of another exciting part about the nuclear market is we announced $1 billion of awards.

Travis Johnson: We still have the Rolls-Royce that came in after. We have other things happening in our nuclear market we're really excited about, and we're not seeing any protests. So we get to translate that into project work and see that contribute. But of course, in 2026, as Travis said, we only have about 5% of new business to fill the gap. But if you can get the work that we're winning in our accelerating growth market started, that can have a greater impact on the fiscal year. Yeah. And I'll just add, I think John covered it really well, but as we look at kind of bridging Q1 to the rest of the year run rate, there's really just a couple of mechanical things that are going to get us there. Obviously, first and foremost, there's going to be no government shutdown impact in the remaining quarters.

Travis Johnson: That was roughly $150 million. We're also going to benefit from additional working days in the remaining quarters. So in Q1, there were 60 working days. In Q2 and Q3, there'll be 63 working days. And in Q4, there's 64 working days. So just kind of math on average daily run rate, right, that's an additional $150 million a quarter. And then obviously, the other net organic contributions, including things like ramp-up of new contract awards. We've mentioned our Space Force Range contract previously that only had one month's worth of revenue in the first quarter and will obviously have full-quarter benefit in the remaining quarter. So fairly simple bridge to kind of get you to how we see the rest of the year playing out. And then in terms of where we fall within the guidance range, I think John hit it really well.

John Heller: Yes. Good morning. I think for us, the Golden Dome story begins with kind of what we're doing today. In January, General Guetlein, the Pentagon's appointed leader for the whole Golden Dome system realization, he made some great comments about the priorities for the first two years. He really focused on the baseline command and control capability for this integrated system of systems that is Golden Dome and incorporating interceptors into the systems. So if you look at Amentum today, we're already doing a lot of work that's, I'll say, bringing that to life. We're supporting, certainly, the Missile Defense Agency. John mentioned our IRES contract where we've established now the digital backbone that's going to allow those systems to be integrated into our missile defense architecture and even developing prototype systems like, as has been in the media, the hypersonic tracking and ballistic space sensors.

John Heller: So those prototype systems we're working to bring to life. And so already in conjunction with the Missile Defense Agency, Amentum's doing a lot of that work. And I would quickly mention our work also with the Space Force in their NORAD mission where we're advancing their ability to detect and track and have missile warning capabilities. We are continuing to sustain and advance their systems to carry out those parts of the missions. And so we, Amentum, are even on our current contract seeing tasking that is relevant to the future solution that is Golden Dome. And so in parallel, as you correctly mentioned, now we, along with many other companies, have a seat on the SHIELD contract. We have begun just to see some of the plans for some of the procurements that will come out under SHIELD. We, like others, are positioning for those.

John Heller: Yes. We are really pleased that we've had the chance, even just within the past couple of weeks, to meet with the new administrator and his team. And at the top level, let me just say, we're excited to continue supporting NASA to achieve the president's national space policy goals and maintain US leadership in space exploration. And everybody's aligned around that. And even more specifically, just within the past couple of weeks, we've enjoyed interacting with the new NASA leadership at the Kennedy Space Center in Florida where the integrated team is working to prepare for the Artemis II mission. And if you're following, it's now slated for the March launch window. And so we're very proud of our current role in supporting NASA with this historic mission, which, by the way, will take humans deeper into space than they've ever before traveled and will bring them home safely.

Travis Johnson: Yes. We are really pleased that we've had the chance, even just within the past couple of weeks, to meet with the new administrator and his team. And at the top level, let me just say, we're excited to continue supporting NASA to achieve the president's national space policy goals and maintain US leadership in space exploration. And everybody's aligned around that. And even more specifically, just within the past couple of weeks, we've enjoyed interacting with the new NASA leadership at the Kennedy Space Center in Florida where the integrated team is working to prepare for the Artemis II mission. And if you're following, it's now slated for the March launch window. And so we're very proud of our current role in supporting NASA with this historic mission, which, by the way, will take humans deeper into space than they've ever before traveled and will bring them home safely.

John Heller: So rest assured that proper preparation for Artemis II is a priority for us. Administrator Isaacman, he did recently, just as you noted, he committed to say, "Hey, NASA's got to focus on rebuilding internal talent, strengthening contractual provisions, and fostering their culture of technical resilience." These are all positive objectives, and we are fully in alignment. NASA has a unique leadership role in the world. And never before in history has it been more important that NASA lead in this area. So we're very excited about that. I think for us, as we've interacted with new NASA leadership, the administrator, we think, is focused on pushing the agency to deliver successful missions, to do that in alignment with cost constraints as well as schedule imperatives. We, Amentum, we believe our proven expertise, coupled with our highly advantaged cost posture, we think we're positioned.

Travis Johnson: So rest assured that proper preparation for Artemis II is a priority for us. Administrator Isaacman, he did recently, just as you noted, he committed to say, "Hey, NASA's got to focus on rebuilding internal talent, strengthening contractual provisions, and fostering their culture of technical resilience." These are all positive objectives, and we are fully in alignment. NASA has a unique leadership role in the world. And never before in history has it been more important that NASA lead in this area. So we're very excited about that. I think for us, as we've interacted with new NASA leadership, the administrator, we think, is focused on pushing the agency to deliver successful missions, to do that in alignment with cost constraints as well as schedule imperatives. We, Amentum, we believe our proven expertise, coupled with our highly advantaged cost posture, we think we're positioned.

Travis Johnson: Yeah. I would say there's a lot of activity. We are extremely busy. We haven't made any announcements, but trust me, our team could not be busier given the support of this administration as well as the need, the demand, that is there from the hyperscalers and the whole community understanding that energy and meeting the energy needs of our industry is a national security issue. So it's all hands on deck, great relationship with the government and commercial business as well as foreign investment, and really working together to allow this to happen in the United States, this resurgence of nuclear, call it the second nuclear renaissance, and bringing that on. And part of it is the excitement around small modular reactors, right? So SMR development is really happening. We have, in the US, some great companies that are leading that effort.

John Heller: I think it's a great deeper look into the way we've laid out the space market. I'll be forthcoming. The way we are kind of omnipresent across all of those areas, it can be a little bit challenging to segregate revenue between the four. I think that you could argue that the majority, if not all, of our revenue in the space market kind of all points toward that integrated systems bubble or segment of the market where we're, whether it's front-end design all the way through development, integration, and test, all of it headed toward integrated systems. But the other piece that we've got to factor in, that's really a new term in our Amentum equation, is the Space Force Range contract, where we are today, now have just ramped up that contract and are having such an increased activity in the launch portion of the total market.

Travis Johnson: I think it's a great deeper look into the way we've laid out the space market. I'll be forthcoming. The way we are kind of omnipresent across all of those areas, it can be a little bit challenging to segregate revenue between the four. I think that you could argue that the majority, if not all, of our revenue in the space market kind of all points toward that integrated systems bubble or segment of the market where we're, whether it's front-end design all the way through development, integration, and test, all of it headed toward integrated systems. But the other piece that we've got to factor in, that's really a new term in our Amentum equation, is the Space Force Range contract, where we are today, now have just ramped up that contract and are having such an increased activity in the launch portion of the total market.

Travis Johnson: Yeah. On the book-to-bill, and I'll let John elaborate on the opportunities moving forward. Obviously, Q1 was a highlight, over $1 billion or right around $1 billion of the $3.3 billion in net bookings tied to just the global nuclear energy part of the accelerating growth market. So I think it's fair to say if you look at over the last 12 months, there's been proportionally outsized contribution from our accelerating growth markets, as you would expect with awards such as Space Force Range, a lot of the other international nuclear opportunities. So certainly, they are the leading factor in our book-to-bill performance. That said, we still are excited about what our core growth markets are contributing, and they continue to have robust bookings as well. I mean, we don't divide the book-to-bill.

Travis Johnson: And what we did this quarter, we did say we had $1 billion of nuclear awards. We will continue to kind of share some of the color on where these awards are coming from. We think the one highlight of Amentum is that we have been delivering what we say we're going to deliver. We have been consistent. This team has developed a very solid strategy. We've used the last two quarters to share that strategy with the marketplace. It is working. It is delivering. We think the diversification of Amentum is a key strength. And we're showing that across our core markets and across our accelerating growth markets, our ability to compete on the largest and most complex contracts in these areas. And I think as we go forward, we will continue to share more detail. Things are happening in the digital infrastructure market.

John Heller: And what we did this quarter, we did say we had $1 billion of nuclear awards. We will continue to kind of share some of the color on where these awards are coming from. We think the one highlight of Amentum is that we have been delivering what we say we're going to deliver. We have been consistent. This team has developed a very solid strategy. We've used the last two quarters to share that strategy with the marketplace. It is working. It is delivering. We think the diversification of Amentum is a key strength. And we're showing that across our core markets and across our accelerating growth markets, our ability to compete on the largest and most complex contracts in these areas. And I think as we go forward, we will continue to share more detail. Things are happening in the digital infrastructure market.

Travis Johnson: We're going to talk about that next quarter. We talked about the global nuclear last quarter. We talked about space systems and technologies. And we're seeing momentum in these accelerating growth markets as well as continued strength in our core markets that we've been delivering for decades. So yes, we plan to continue to share more of the details aligning to these accelerating growth markets as we go forward because we just see our pipeline is shaping up across these areas between core and the three accelerating growth markets, which is part of our strategy to continue to prioritize the higher-margin areas while still taking advantage of our leadership position in the core markets. So we're excited about how the pipeline is pulling together. And our focus on new business scale are all starting to work and pay off.

John Heller: We're going to talk about that next quarter. We talked about the global nuclear last quarter. We talked about space systems and technologies. And we're seeing momentum in these accelerating growth markets as well as continued strength in our core markets that we've been delivering for decades. So yes, we plan to continue to share more of the details aligning to these accelerating growth markets as we go forward because we just see our pipeline is shaping up across these areas between core and the three accelerating growth markets, which is part of our strategy to continue to prioritize the higher-margin areas while still taking advantage of our leadership position in the core markets. So we're excited about how the pipeline is pulling together. And our focus on new business scale are all starting to work and pay off.

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Q1 2026 Amentum Holdings Inc Earnings Call

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Q1 2026 Amentum Holdings Inc Earnings Call

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Q1 2026 Amentum Holdings Inc Earnings Call

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